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Ontario has hired a major consulting firm to advise it on how to proceed on the $60-billion Ring of Fire mineral belt in the northwestern region of the province.

Deloitte LLP will advise the government on how to set up a corporation to oversee infrastructure development in the region, Michael Gravelle, minister of northern development and mines, announced Friday.

“Given the divergent transportation proposals on the table, a neutral third party will be helpful,” Gravelle said, noting the options for accessing the belt range from road to rail to hovercraft.

“We want to make sure we get this right,” Gravelle added. “This is another important and very significant step forward.”

In December, a major mining company, Cliffs Natural Resources Inc., suspended its $3.3-billion project in the area, blaming unresolved land claims, environmental assessment issues and lack of government support for infrastructure and power needs.

Opposition critics blamed the Ontario Liberal government, saying it had “bungled” a major economic opportunity.

Another 27 mining companies remain involved in the region, including the second largest player, Toronto-based Noront Resources Ltd.

The Ring of Fire, which lies 500 kilometres northeast of Thunder Bay, is home to North America’s largest known deposit of chromite, a key ingredient in stainless steel.

The 4,000-square-kilometre, mineral-rich area could generate a century’s worth of work for the economically depressed region.

But the region will require up to $2 billion worth of infrastructure development before mining can go ahead, observers estimate.

Gravelle assured reporters Friday the province is committed to the Ring of Fire project and is prepared to make “a significant infrastructure investment.”

He also repeated his call on the federal government to get involved.

“I was disappointed there was no mention in the federal budget of the Ring of Fire and certainly no commitment,” he said. “The Ring of Fire is a project of national significance.”

On Friday evening, however, federal Minister of State (Science and Technology) Greg Rickford, released a statement on the issue: “Economic Action Plan 2014 reaffirmed our government’s commitment to the new Building Canada Plan. We look forward to the government of Ontario identifying its priority infrastructure projects under Building Canada, including those projects related to the Ring of Fire. …. Our government believes that the Ring of Fire is a legacy resource development project with the potential to contribute significantly to the economic future of Northern Ontario.”

The cost and timing of Deloitte’s advice to the government was not disclosed in Friday’s announcement.

Addressing the infrastructure issue is just one of a number of challenges facing the region. Deloitte will not be involved in discussions with First Nations over environmental and revenue-sharing agreements, Gravelle said.

Talks between former Supreme Court of Canada Justice Frank Iacobucci, lead negotiator for the province, and former Ontario premier Bob Rae, lead negotiator for the Chiefs of the Matawa Tribal Council, have made “significant progress,” Gravelle said.

However, “there is still work to be done,” he said, noting “it will be up to the Matawa chiefs and their communities to report back to us on the next step.”

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